Daily Metal and Energy Outlook 04th April
Bullions: Bullion counter may trade with sideways path. Gold can take support near 31450 while facing resistance near 31800.Silver can witness lower level buying as it can test 37500 while taking support 37000. Gold prices inched up on Thursday as the dollar eased and a rally in equities paused, while investors kept a close watch on Sino-U.S. trade talks. Asian shares paused near an eight-month peak as investors awaited developments on trade talks between the United States and China, who appear closer to signing a deal. Asian shares paused near an eight-month peak as investors awaited developments on trade talks between the United States and China, who appear closer to signing a deal. The lower house of the British parliament on Wednesday approved legislation which would force Prime Minister Theresa May to seek a Brexit delay to prevent a potentially disorderly departure on April 12 without a deal.
Base metals: Base metals prices may trade in green as prices of copper and other industrial metals rose on Wednesday as strong Chinese manufacturing data and reports of progress in U.S.-China trade talks bolstered the demand outlook. The Chinese Caixin/Markit composite manufacturing and services PMI rose to a nine-month high in March, adding to signs that stimulus is gradually kicking in. Copper may test 452 while taking support near 444 in MCX. Copper also reflected indigenous leaders in Peru rejecting talks with the government to end disruption at a major mine. An indigenous community that has blocked roads to the copper mine has decided not to negotiate with the government further until the group’s lawyers are freed from jail. The blockade has halted exports from Las Bambas, which produces about 400,000 tonnes of copper a year, accounting for about 2 percent of global production. Zinc can test 228 while taking support near 224. Iron ore futures in China saw their best day in seven weeks on Wednesday, extending a record-breaking rally amid supply disruption concerns flagged by the world’s major sellers of the steelmaking raw material as well as demand from steel mills. Lead can move in range of 136-139. Nickel may recover towards 926 while taking support near 910. Aluminum prices may trade in range of 145-147.
Energy: Crude oil may trade on negative note as oil prices. Oil prices dipped on Thursday, with Brent edging away from the psychologically important $70 level after easing in the previous session on data showing a surprise build in U.S. inventories. Crude oil inventories in the United States rose by 7.2 million barrels last week, as net imports climbed, the Energy Information Administration said on Wednesday. Analysts had forecast a decrease of 425,000 barrels. Brent, the global benchmark, is up nearly 30 percent this year, while WTI has gained nearly 40 percent, with prices underpinned by tightening global supply and signs of demand picking up. U.S. crude production climbed 100,000 barrels per day (bpd) to a record 12.2 million bpd, after hovering around 12-12.1 million bpd since mid-February, according to the data from the Energy Information Administration. Crude oil may slip lower towards 4240 while taking resistance near 4320 in MCX. Natural gas may witness lower level buying as it can test 188 while taking support near 180 in MCX. Iron ore futures in China saw their best day in seven weeks on Wednesday, extending a record-breaking rally amid supply disruption concerns flagged by the world’s major sellers of the steelmaking raw material as well as demand from steel mills.
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